Is this the Right Year to Start Your Business?

MOMMY TALKS PODCAST Episode 8
  • MOMMY TALKS PODCAST

What do Airbnb, Burger King, CNN, and General Motors all have in common?

They are all billion-dollar companies and some of the biggest brand names in the world. But all of them had humble beginnings. They were all started during times of economic turmoil or recession.

General Motors was started after the Panic of 1907 financial crisis. Burger King began as an affordable food joint in the 1950s after the Korean war. CNN first broadcasted on June 1st, 1980, when US inflation had hit 15 percent. And Airbnb was founded after the 2007-2008 financial crisis.

Moral of the story? While you are sitting there on your sofa sulking about losing your job or receiving a pay cut, someone else is out there seizing this opportunity and laying foundations for another billion-dollar company.

Five Ways a Recession is Beneficial to a Business Startup

I am going to give you five reasons why starting a business during a recessionary period might be quite beneficial:

1. Borrowing and financing becomes cheaper. During an economic slowdown the government usually cuts interest rates to boost economic activity. In 2020, interest rates were at zero percent in the United States, which meant anyone with good credit could go into a bank and secure an interest-free loan.

2. Top talent is available for hire. Many industries have shut down or downsized due to the Coronavirus, laying off valuable employees. There are many skilled people out there without a job that you can employ who can do wonders for your business.

3. Necessity is the mother of all innovation. With the Coronavirus gripping the world, whole new sets of problems were created. Businesses that were quickly able to capitalize on the opportunities to solve these problems were able to shine. New business models like online teaching and fitness, food and retail delivery emerged to fill the gaps created by the Coronavirus.

4. Competition is low. It is a great time to enter the market because the existing players are financially quite fragile due to losses incurred during the slowdown. This is a time when you can give even the biggest players in your industry some tough competition. You can position yourself as a leader in your industry, offering your customers value filled content, products, or services.

5. Negotiating power. Some small businesses might be available for sale due to owners facing financial problems. You might be able to secure an existing business for a dirt cheap price. Then you can apply your own magic and turn its financial performance around in a year or two.

Motivations of Starting a Business?

Why am I pushing you to start your own business ? There are certain advantages to owning your own business which you cannot enjoy working a nine to five job.

Conclusion

Setting up a business does come with some initial struggles. You might even have people criticizing you and your business ideas. Thomas Edison's teachers said he was "too stupid to learn anything." He was fired from his first two jobs for being "non-productive." He certainly didn’t invent the light bulb on his first try. But look at how things turned out for him.

I never said it would be easy! Many people do not take the leap of faith due to this initial phase of uncertainty. They allow their fears of what could go wrong to stop them from reaching their greatest potential. Rather than worrying about what might go wrong, start to imagine what your life will look like when things go right.

My goal is to spend as much time offline as humanly possible. I have two little guys that demand my attention outside of work and am aware that you have little ones that are just as demanding as mine are. If we're not connected on Facebook, Instagram, YouTube or Twitter, be sure to find me there. I'm always down to connect and answer any questions, feel free to reach out to me and my team at support@expandingwithasha.com!

SPREAD THE WORD

Share on facebook
Share on twitter
Share on whatsapp
Share on linkedin
Share on email

LET YOUR OPINION BE HEARD

Share:

Share on facebook
Share on twitter
Share on email
Share on pinterest

Hi! I'm Asha.

Born and raised in South Carolina, I’m a country girl who’s passionate about making a difference in the world. I’m an obsessive learner who spends time reading, creating, and selling online educational programs for mothers.

More Posts

TAKING BACK CONTROL

BY STARTING A BUSINESS

LIVING AN ECO-CONSCIOUS LIFE

BY GOING GREEN

NEW PODCAST IS OUT

Send Us A Message